SMAR quick Q2 highlights

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1

SMAR reported another great quarter.

Revenue: Total revenue was $64.6 million, an increase of 53% year over year. Subscription revenue was $58.3 million, an increase of 56% year over year. Professional services revenue was $6.3 million, an increase of 29% year over year.

The following numbers are outstanding:

Second Quarter Fiscal 2020 Business Highlights

  • Ended the quarter with 82,186 domain-based customers
  • The number of all customers with annualized contract values (“ACV”) of $5,000 or more grew to 7,673, an increase of 55% year over year
  • The number of all customers with ACV of $50,000 or more grew to 635, an increase of 113% year over year
  • The number of all customers with ACV of $100,000 or more grew to 226, an increase of 128% year over year
  • Average ACV per domain-based customer increased to $2,972, an increase of 48% year over year
  • Dollar-based net retention rate was 134%
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Three things stand out for me:

  • Revenue growing steadily at > 50%

  • Increase in ACV of 100K > Increase in ACV of 50K > Increase in ACV of 5K
    This is great as more accounts move from lower paying to higher paying category over time

  • Dollar based retention at 134%:
    People are using there product and buying more.

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3

I don’t get these analysts. Company reported smaller loss and the stock goes down after hours.

Shares of Smartsheet Inc. (SMAR) are trading lower in Wednesday’s after-hours session, following the release of second-quarter financial results.

At 6:09 p.m. ET, the company’s shares had lost 8.22% to trade at $43.97. After-hours volume topped 126,000 shares.

Shares of the cloud-based work execution platform company finished the day’s regular trading session with a gain of 1.83%, closing at $47.91.

After the bell, Smartsheet reported a loss of $19.1 million in the quarter, or 17 cents a share. Analysts had been anticipating a loss of 24 cents a share, according to FactSet. On an adjusted basis, Smartsheet reported a loss per share of 8 cents. Analysts were expecting a loss of 16 cents.

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At 6:09 p.m. ET, the company’s shares had lost 8.22% to trade at $43.97. After-hours volume topped 126,000 shares.

This is surprising since SMAR had a beat ($64.64 million in revenues compared to estimates of $63.5 million) and a raise (guidance of $265-268 million in revenues for the full year compared to prior estimates of $264 million).

5

The guidance is now a wider loss per share, from a consensus loss of .15 to now a loss of .18 to .19 a share next quarter and a few cents more for full year.

Everything else looks great. If you like the stock, then take the sell off tomorrow as a better opportunity.

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